Origin Evolution and Significance of International Trade 1 C

Origin, Evolution and Significance of International Trade 1. Compare and contrast the GATT and WTO. (6 marks)

Solution

The Uruguay round of GATT continued for eight years .The Dunkel draft was prepared in the discussion. As per Dunkel draft, a new organization was formed. It’s name World Trade Organization or WTO.

The WTO is the successor of GATT , it is not an extension of GATT. The first major difference between GATT and WTO is that GATT was no organization. It was only an agreement. But WTO has been established as an organization. Secondly, the GATT has no legal status, but, WTO has legal status. Thirdly, in GATT there were separate agreements for separate issue, but WTO agreement are binding on all members. Fourthly, the GATT rules were applicable only for goods, services were not included, but in WTO, services are included.